ASX energy shares are largely moving higher today.
While many factors impact each individual company's share price, ASX energy shares are undoubtedly enjoying a continuing surge in oil prices.
Currently at US$74.49 (AU$96.75) per barrel, Brent crude is trading at its highest levels in more than 2 years.
Indeed, as recently as 30 October, Brent was selling for a mere US$37.46 per barrel. Or roughly half what it's fetching today.
Little wonder then that we see most ASX energy shares benefiting.
What's ahead for oil?
Oil prices have been soaring on the back of demand and supply imbalances.
Demand has been resurgent as the world emerges from pandemic lockdowns. Supply has been reduced due to successful efforts by OPEC+ (which includes Russia) to cut output, along with far less shale oil coming out of the US since COVID struck.
Mike Muller is Vitol Group's head of Asia. Vitol, if you're unfamiliar, is the world's biggest independent oil trader.
According to Muller (as reported by Bloomberg), with US output down OPEC+ is in the driver's seat when it comes to managing prices. "There's a perception in the market that control is with OPEC+. It will take a long time for US oil to come back," Muller said.
Muller expects China's economic growth will also drive further demand for oil and bring down crude stockpiles.
Now, even for the experts, forecasting the price of oil is contingent on many factors. Should US supply unexpectedly ramp up, or should global energy demand falter in the face of renewed virus lockdowns, the oil price would almost surely retrace.
4 ASX energy shares trading higher today
There's a rather lengthy list of ASX energy shares, big and small, trading higher today.
For the purposes of this article, we'll look at 4 of the bigger, leading players.
First up, Santos Ltd (ASX: STO). The S&P/ASX 200 Index (ASX: XJO) listed energy share has a market cap of $16.2 billion and is currently trading for $7.79 per share. The Santos share price is up 1.5% in intraday trading and has gained 24.2% so far in 2021.
Next, we have Woodside Petroleum Limited (ASX: WPL). Woodside is another ASX 200 energy share, with a market cap of $23.5 billion. The Woodside share price is up 2.9% in early afternoon trade and up 7.3% year-to-date.
On the smaller end of this pack is Senex Energy Ltd (ASX: SXY), with a market cap of $656 million. The Senex share price is up 4.23% today and has gained 41.8% so far in 2021.
Finally, we leave off with ASX energy share Oil Search Ltd (ASX: OSH). Also an ASX 200 company, Oil Search has a market cap of $8.7 billion. The Oil search share price is up 2% in intraday trading and up 13% year-to-date.
